Foreign Buyer Stamp Duty Surcharges and FIRB in Australia 2026: A Mortgage Broker Guide

Purchasing property in Australia as a foreign buyer or non-resident has never been more complex. In 2026, foreign purchasers face a layered set of obligations: state-level stamp duty surcharges of up to 9%, mandatory Foreign Investment Review Board (FIRB) approval, annual land tax surcharges, and vacancy fees. For those who can navigate these requirements, Australian property remains an attractive long-term investment — but the financial and regulatory landscape demands careful planning and specialist mortgage advice.

Understanding Foreign Buyer Stamp Duty Surcharges in Australia

In addition to standard transfer duty (stamp duty), most Australian states impose a foreign purchaser surcharge on residential property acquisitions by foreign persons. These surcharges are calculated on the dutiable value of the property and are payable at settlement.

The current surcharge rates by state and territory in 2026 are:

• New South Wales — 9% surcharge on the full purchase price
• Victoria — 8% surcharge on the full purchase price
• Queensland — 8% surcharge on the full purchase price
• Tasmania — 8% surcharge on the full purchase price
• South Australia — 7% surcharge on the full purchase price
• Western Australia — 7% surcharge on the full purchase price
• Australian Capital Territory — No foreign purchaser surcharge
• Northern Territory — No foreign purchaser surcharge

These surcharges are in addition to standard stamp duty, which varies by state and purchase price. On a $1 million property in New South Wales, for example, a foreign buyer would pay approximately $40,000 in standard stamp duty plus $90,000 in foreign purchaser surcharge — a total of $130,000 in transfer costs before any other acquisition expenses.

Who Is Classified as a Foreign Person?

The definition of "foreign person" for stamp duty and FIRB purposes is more nuanced than many buyers expect. Understanding your classification is essential before proceeding with any property purchase.

• Australian citizens — Generally not classified as foreign persons for stamp duty purposes, even if they reside overseas. However, if purchasing through a trust or corporate structure, the entity itself must be assessed.
• Permanent residents — Generally not classified as foreign persons in most states, though rules vary. Some states require permanent residents to have been ordinarily resident in Australia for a specified period.
• Temporary visa holders — Typically classified as foreign persons and subject to surcharges. Some states offer a refund mechanism if the buyer later obtains permanent residency and meets occupancy requirements.
• New Zealand citizens on a Subclass 444 visa — Often treated as non-foreign in various states, provided they are ordinarily resident in Australia.
• Foreign corporations and trusts — Subject to surcharges based on the foreign ownership percentage of the entity.

The classification rules differ between states and can change. A mortgage broker with experience in foreign buyer transactions will ensure you understand your classification before committing to a purchase.

FIRB Approval: What Foreign Buyers Must Know

Separate from state-level stamp duty, most foreign persons must obtain approval from the Foreign Investment Review Board (FIRB) before purchasing residential property in Australia. FIRB approval is a federal requirement administered by the Australian Taxation Office (ATO).

Key FIRB rules for residential property in 2026 include:

• Established dwellings — From 1 April 2025 through 30 June 2029, foreign buyers are generally prohibited from purchasing established (existing) dwellings. Limited exceptions apply, including for certain temporary residents purchasing a principal place of residence.
• New dwellings and vacant land — Foreign buyers may generally purchase new dwellings and vacant land (for development) with FIRB approval.
• FIRB application fees — Fees are indexed annually each July. For 2025-26, fees for properties valued up to $1 million are approximately $14,100 for new dwellings and $45,300 for established dwellings (where permitted). Fees increase significantly for higher-value properties.
• Conditions — FIRB approval is typically granted with conditions, such as requirements to develop vacant land within a specified timeframe or to use a new dwelling as a principal place of residence.

Purchasing without FIRB approval where it is required is a serious offence that can result in forced divestiture of the property, civil penalties, and criminal prosecution.

Additional Holding Costs for Foreign-Owned Property

The financial obligations for foreign property owners do not end at settlement. Ongoing holding costs include:

• Land tax surcharges — Several states impose an annual land tax surcharge on foreign-owned residential land, in addition to standard land tax. In New South Wales, for example, the foreign owner surcharge is 4% per annum of the land value.
• Vacancy fees — Foreign-owned dwellings that are not occupied or genuinely available for rent for at least 183 days per year are subject to an annual vacancy fee, typically equal to double the relevant FIRB application fee.
• Foreign Resident Capital Gains Withholding (FRCGW) — From 1 January 2025, when a foreign resident sells Australian property, the purchaser must withhold 15% of the purchase price at settlement and remit it to the ATO, unless the seller provides a valid clearance certificate. This applies to all property sales with no minimum threshold.

Australian Regulatory Context

The foreign investment framework is administered by the ATO on behalf of the Treasurer, under the Foreign Acquisitions and Takeovers Act 1975. FIRB provides guidance on the rules, but the ATO processes applications and enforces compliance.

ASIC's best interests duty requires mortgage brokers to act in the best interests of their clients when recommending loan products. For foreign buyers, this means brokers must consider the full cost of acquisition — including surcharges, FIRB fees, and ongoing holding costs — when assessing loan suitability and borrowing capacity.

The Australian Prudential Regulation Authority (APRA) serviceability buffer of 3 percentage points above the loan rate applies to all borrowers, including foreign buyers. Lenders also apply their own foreign buyer policies, which may include lower maximum loan-to-value ratios (LVRs), higher interest rates, or restrictions on the types of property they will lend against.

The Australian Financial Complaints Authority (AFCA) handles disputes between borrowers and lenders or brokers. Foreign buyers who believe they received inappropriate advice or were misled about the costs of purchasing in Australia can lodge a complaint with AFCA.

Questions to Ask Your Mortgage Broker

When engaging a mortgage broker as a foreign buyer or non-resident, the following questions will help you assess their expertise and ensure you receive appropriate advice:

• Do you have experience with foreign buyer transactions? — Not all brokers are familiar with the FIRB process, foreign buyer lender policies, or state-specific surcharge rules. Ask for specific examples of foreign buyer transactions they have completed.
• Which lenders will consider my application? — Many Australian lenders have restrictions on lending to non-residents or foreign nationals. An experienced broker will know which lenders are active in this space and what their specific requirements are.
• What is my total acquisition cost? — Ask the broker to provide a full breakdown of all costs, including standard stamp duty, foreign purchaser surcharge, FIRB fees, legal costs, and lender fees.
• What LVR can I achieve? — Foreign buyers often face lower maximum LVRs than Australian residents. Understanding your maximum borrowing capacity before making an offer is essential.
• How will my income be assessed? — If your income is earned overseas, lenders will apply a foreign income shading (typically 20-40% reduction) when assessing serviceability. Ask how your specific income situation will be treated.
• What are the ongoing holding costs? — Ensure the broker explains land tax surcharges, vacancy fees, and FRCGW obligations so you can factor these into your investment analysis.

How MyMoney® Can Help

Navigating the foreign buyer property finance landscape in Australia requires a mortgage broker with specialist knowledge of FIRB requirements, state-specific surcharge rules, and lender policies for non-resident borrowers. The wrong advice at the wrong time can result in unexpected costs, failed applications, or regulatory penalties.

MyMoney® connects foreign buyers and non-resident Australians with experienced mortgage brokers who specialise in cross-border property finance. Whether you are an overseas investor, an Australian expat returning home, or a temporary resident looking to purchase your first Australian property, our marketplace helps you find the right specialist.

Post a Brief to describe your property finance needs and receive proposals from qualified mortgage brokers with foreign buyer expertise. Or Browse Mortgage Brokers to find professionals who can help you navigate the 2026 foreign buyer landscape with confidence.

The costs of purchasing Australian property as a foreign buyer are significant — but with the right mortgage broker and the right planning, the process is manageable. The key is to understand the full picture before you commit.